Dominican Republic - Real effective exchange rate index (2010 = 100)

The value for Real effective exchange rate index (2010 = 100) in Dominican Republic was 81.19 as of 2021. As the graph below shows, over the past 41 years this indicator reached a maximum value of 147.87 in 1982 and a minimum value of 71.26 in 1988.

Definition: Real effective exchange rate is the nominal effective exchange rate (a measure of the value of a currency against a weighted average of several foreign currencies) divided by a price deflator or index of costs.

Source: International Monetary Fund, International Financial Statistics.

See also:

Year Value
1980 143.67
1981 146.06
1982 147.87
1983 141.25
1984 98.49
1985 113.54
1986 104.01
1987 85.04
1988 71.26
1989 85.91
1990 84.56
1991 85.30
1992 85.97
1993 89.71
1994 93.99
1995 98.84
1996 102.61
1997 102.51
1998 102.65
1999 99.00
2000 103.49
2001 108.25
2002 105.65
2003 79.92
2004 79.96
2005 106.85
2006 100.52
2007 100.68
2008 99.77
2009 99.58
2010 100.00
2011 96.42
2012 96.33
2013 93.55
2014 91.64
2015 94.20
2016 93.77
2017 90.88
2018 87.85
2019 86.83
2020 81.02
2021 81.19

Development Relevance: In a market-based economy, household, producer, and government choices about resource allocation are influenced by relative prices, including the real exchange rate, real wages, real interest rates, and other prices in the economy. Relative prices also largely reflect these agents' choices. Thus relative prices convey vital information about the interaction of economic agents in an economy and with the rest of the world.

Limitations and Exceptions: Because of conceptual and data limitations, changes in real effective exchange rates should be interpreted with caution.

Statistical Concept and Methodology: The real effective exchange rate is a nominal effective exchange rate index adjusted for relative movements in national price or cost indicators of the home country, selected countries, and the euro area. A nominal effective exchange rate index is the ratio (expressed on the base 2010 = 100) of an index of a currency's period-average exchange rate to a weighted geometric average of exchange rates for currencies of selected countries and the euro area. For most high-income countries weights are derived from industrial country trade in manufactured goods. Data are compiled from the nominal effective exchange rate index and a cost indicator of relative normalized unit labor costs in manufacturing. For selected other countries the nominal effective exchange rate index is based on manufactured goods and primary products trade with partner or competitor countries. For these countries the real effective exchange rate index is the nominal index adjusted for relative changes in consumer prices; an increase represents an appreciation of the local currency.

Base Period: 2010

Periodicity: Annual

Classification

Topic: Financial Sector Indicators

Sub-Topic: Exchange rates & prices